Q. The Ace weather Corporation manufactures barometers also thermometers for weather forecasters. In an attempt to forecast its future requires for mercury, Ace weather's chief economist estimated average monthly mercury requires as:
N = 500 + 10X where N = monthly mercury requires (units) also X = time period in months (January 2005 = 0). The following monthly seasonal adjustment factors have been estimated using data from the past five years:

Month Adjustment Factor
January 15%
April 10%
July -20%
September 5%
December -10%

a. Forecast Ace weather's mercury requires for January, April, July, September also December of 2007.

b. The following actual also forecast values of mercury requires in the month of November have been recorded:

Year Actual Forecast
2004 456 480
2005 324 360
2006 240 240

Illustrate what seasonal adjustment factor should the rm utilize for November?